New auto transport venture for India established

  Container Corp. of India Ltd. (CONCOR) and NYK Line (India), a wholly owned subsidiary of the Japanese carrier, have agreed to establish a joint venture that will transport automobile by rail.

   Each company will have a 50 percent stake in the new venture.
   A number of automobile manufacturers are scheduled to open or expand their businesses in India by 2010 in response to the rapid growth within this industry in the country. Since 2004, NYK has provided an automobile transportation service that makes use of trucks, and in order to meet swelling demand, the company has decided to expand into railway transport.

   This new venture will establish a hub-and-spoke network to provide eco-oriented, high-volume rail services complemented by truck transport, thus allowing the company to satisfy expanding demand for automobile transport while, at the same time, reduce carbon emissions.

   Trial transport from Delhi and Chennai will be followed by services from other areas. The eventual goal is for rail transport for automobiles to occur through use of auto racks. For the time being, though, automobiles will be loaded into containers. One container can accommodate five to six small cars or four medium-size cars, and up to 45 containers can be hauled at a time.

Source: Americanshipper